Chapter 14: Social Class Influences on Consumer Behavior.

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Presentation transcript:

Chapter 14: Social Class Influences on Consumer Behavior

What factors determine social class? Income?. Other factors Social Class Index

Social Class Impact on Consumption Conspicuous Consumption-acquisition and display of goods to show off one’s status “Keeping up with the Joneses” Examples? Conspicuous Waste-Visibly buying products that one never uses Examples? Compensatory Consumption-Buying products to offset frustrations or difficulties in life Examples?

US Social Classes Upper Class Upper-Upper (.3%): inherited wealth, aristocratic Lower-Upper (1.2%): newer social elite, professionals, corporate leadership Upper-Middle (12.5%): college graduate managers and professionals, private clubs, the arts, etc. Middle Class Middle Class (32%): Average pay white collar, blue collar, live on the “better side of town.” Working Class (38%): Average pay blue collar, “working class lifestyle” Lower Class Lower (9%): working, just above poverty Lower-Lower (7%): on welfare, poverty stricken, out of work or “dirtiest” jobs

Group Activity Assume you are a travel agent selling vacation packages to different social classes. Discuss and create a plan for: (1) vacation packages to offer (destination, accommodations, food, etc.) (2) advertising and appeals used (3) media location Do this for (a) upper class, (b) middle class, and (c) working class. Discuss if YOUR product is better suited for upper, middle, or working class and why. Write down your ideas and be prepared to share with the class.